Shark Tank investor Kevin O’Leary detailed the specific financial challenges North American startups face from Chinese manufacturing competition during an April 11, 2025, call with an unidentified media.
O’Leary highlighted a pattern by sharing an example where companies investing $10 million in research and development encounter direct market competition from Chinese manufacturers.
These manufacturers reproduce similar products and then sell them at significantly reduced prices across multiple markets.
“As soon as it gets to a run rate of five million annually, almost 100% of the time it gets knocked off in China,” O’Leary explained during the call.
Shark Tank investor further pressed,
“They’re just making pure margin. They have no R&D to recover. This happens thousands of times and there’s no recourse,” he shared.
This approach gives Chinese manufacturing companies a quick market entry.
Shark Tank‘s Kevin O’Leary proposes strict measures for Chinese trade
Shark Tank’s Kevin O’Leary described consistent patterns in startup challenges. The development cycle includes multiple cost factors. He explained that price points must include all these expenses while competing in the market.
But he alleged that Chinese manufacturing companies skip the entire R&D phase. Describing the challenge, he shared an example,
“The company has to recoup the $10 million that it made, let’s say in R&D. The Chinese don’t so they knock it off and they reintroduce it into the American and Canadian and Mexican market and European market too at 30% to 40% off of the price you’re selling it at because they don’t have to recoup anything.”
This wasn’t the first time O’Leary alleged Chinese companies. Just a day before, during his April 10 Senate testimony, Shark Tank investor brought forward multiple cases of American companies dealing with manufacturing challenges.
“American companies have always performed well anywhere on Earth when given a chance on a transparent and competitive playing field. That’s not the case in China. I’d like to see tomorrow morning 400 percent tariffs,” O’Leary emphasized during his testimony about immediate action needs.
The Senate committee meeting featured a detailed discussion between Chairman Scott and O’Leary, examining widespread production duplication issues.
Chairman Scott used WeatherTech, based in Illinois, as a primary example in the discussions.
The company discovered exact duplicates of their products on Chinese platforms without prior business relationships or manufacturing agreements. O’Leary expanded on this point, stating,
“They got nothing for it. What would be their recourse? Right now, there is nothing they can do. You have just told the story of a million small businesses in America over the last 20 years. They’re knocked off by China, very often the same plants that ran the molds under a relationship they had with the company.”
About Kevin O’Leary
O’Leary’s business career spans multiple successful ventures, per nsb.com. His significant business achievement came through Softkey, which later became The Learning Company. Mattel purchased this educational software firm for $4.2 billion in 1999.
Before Softkey, he co-founded Special Event Television, establishing himself in sports broadcasting.
In 2015, he launched an ETF through O’Shares Investments, expanding his financial services offerings. Currently, he heads a $70 billion AI Data Centre project in Alberta, showcasing his focus on technological advancement.
As Chairman of O’Leary Ventures, he oversees investments across various sectors while continuing his role as a prominent voice on Shark Tank.
His media presence extends beyond investment shows. Starting with Dragons’ Den in Canada, O’Leary later joined Shark Tank, where his direct communication style and business insights gained widespread recognition.
Through his company Something Wonderful, he manages various investment opportunities while maintaining his position as a leading voice in business media.
For more updates, fans can follow Shark Tank star on Instagram – @kevinolearytv.
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Edited by Prem Deshpande
